Turbotax is asking for cost basis even though the 1099-B says "unknown"

Forum|Forum|2 years ago
March 20, 2024
2 replies
0 views

I connected my accounts so Turbotax imported the info from my 1099-B forms. The 1099-B says the investment in question is under "transactions for which basis is not reported to the IRS and Term is Unknown". Box 1e "Cost or other basis" says "Unknown", but Turbotax keeps insisting that I enter an amount.

Bsch4477

Employee

Your broker doesn’t know the cost basis or holding period of the asset so you must supply that information.

DawnC

Employee

The broker/1099-B issuer does not know the basis, so you have to enter it. If you do not know the basis, you will need to enter $0, which will maximize what you pay in tax on that transaction. Cost basis is the amount you paid to acquire the security. Please see the help article below if you need help finding your stock's basis. The difference between the proceeds and the basis is the amount of taxable gain.

How to find a stock's cost basis

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

kblank321Author

I don't understand why I have to provide it at all when the description on the 1099-B says "transactions for which basis is not reported to the IRS" - ?

KrisD15

"Basis" is what you paid, or your "value".

What you sold it for less your cost is your gain (or loss if you sold it for less that what you paid for it).

Although your 1099-B says the basis was not reported, the IRS still wants it. Since it wasn't reported by the Broker on your 1099-B, it's up to you to report it on your tax return.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"